08.07.2004 – 15:57
KfW issues 3-Year USD 3 Billion Bond
Frankfurt/Main, Germany (ots)
Today KfW issued the seventh USD 3 billion global bond under its US Dollar Programme. The bond is rated AAA/Aaa/AAA by Fitch Ratings, Moody's and Standard & Poor's. It matures on July 16, 2007 and pays a coupon of 3.25%. It was issued at a reoffer price of 99.85 and a spread of 38 bp above the three-year US Treasury. The lead managers for the transaction are CSFB, the Royal Bank of Scotland and UBS. Further managers are BNP Paribas, Barclays, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Nomura and the Royal Bank of Canada.
"This was the first larger USD issue since the Fed raised the interest rates. We addressed international investors looking for a liquid bond in the three-year range and met with very intensive demand. We are very glad about the high share of US investors in the order book", comments the head of capital markets at KfW, Horst Seissinger, on the order book. USA accounts for 31%, Asia (not including Japan) for 36%, Japan for 7% and Europe for 18%. With a volume of EUR 4.5 billion the order book is heavily oversubscribed and comprises approximately 160 individual orders. The breakdown by investor category gives the following picture:
Central banks: 38%
Insurance companies: 7%
"We started selling the bond at a spread of 38 to 40 bp above the corresponding US Treasury, but since demand was very strong we revised the spread early to 38 to 39 and opted for 38 bp. We are more than happy with the pricing", said Horst Seissinger.
In December last year KfW had announced to issue at least two global bonds under its US$ Programme. With this second bond issue of the year 2004 KfW reached its target. Depending on the market conditions another bond may be issued under the programme in the second half of the year.
Bond Features KfW 3 bn USD Global Bond VII - 3.25% - 2004/2007
Issuer: KfW (Kreditanstalt für Wiederaufbau)
Guarantor: Federal Republic of Germany
Rating: AAA (fitch Ratings)/ Aaa (Moody's) / AAA (Standard &
Amount: USD 3,000,000,000
Maturity: July 16, 2007
Coupon: 3.25% p.a., payable half-yearly
Coupon payment dates: July 16, January 16
Reoffer price: 99.85
Yield: 3.303% p.a.
Format: Global bond
Lead Managers (3): CSFB Royal Bank of Scotland UBS
Co-Lead Managers (12): BNP Paribas Barclays Citigroup Deutsche Bank Goldman Sachs HSBC JP Morgan Lehman Brothers Merrill Lynch Morgan Stanley Nomura Royal Bank of Canada
ots Original Text Service: KfW Internet: http://www.presseportal.de
For further information: Nathalie Drücke, Phone: +49 (0)69 7431-2098, E-Mail: email@example.com
Original content of: KfW, transmitted by news aktuell